Consider two demand curves and the same price change for both.If the resulting percentage change in quantity demanded is greater for one ( D1)than the other (D2),we can conclude
A)that D1 is inelastic and D2 is elastic.
B)that D1 is elastic and D2 is inelastic.
C)that D2 is more elastic than D1.
D)that D1 is more elastic than D2.
E)nothing about their relative elasticities.

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is greater for D1 than D2, then D1 must be more elastic than D2. This is because elasticity measures the responsiveness of quantity demanded to changes in price, and a more elastic demand curve will show a greater change in quantity demanded for a given change in price.

Consider Two Demand Curves and the Same Price Change for Both.If